Gambling software supplier GAN has said that it expects to surpass its financial forecasts for 2019, with revenue set to grow by between 115% and 120% year-on-year.
In a trading update for the 12 months to 31 December 2019, GAN revealed that its earning before interest, tax, depreciation and amortisation (EBITDA) margin for the year is set to grow to between 30% to 35%, compared to negative 14% in the previous year.
In addition, the supplier expects its 2019 results show that it ended the year with a strong, debt-free balance sheet and positive cash flow.
GAN put the forecast results down to a number of factors, including higher-than-expected demand for online gambling services in New Jersey and Pennsylvania after the start of the NFL American football season in September last year.
The supplier also noted that cross-selling from sports betting to online casino gaming in each state was higher than anticipated. It also benefitted from performance-based payments, relating to the launch of Pennsylvanian online sports betting for certain clients.
Other key factors included faster-than-expected growth in Pennsylvanian sports bettors, relative to the prior-year launch of online sports betting in New Jersey, as well as the roll out of online sports betting in Indiana in October 2019.
GAN also noted that its overseas internet casino venture, in partnership with the Chickasaw Nation of Oklahoma, has launched in selected European markets, and begun to generate revenue.
“We are delighted with our full year performance in 2019, which proved the long-theorised margin opportunity available to GAN as a specialised enterprise software provider and provides a solid foundation for 2020 and beyond, GAN’s chief executive Dermot Smurfit said.
“Our intellectual property and technical expertise put us at the forefront of the internet sports betting and casino gaming market as demonstrated by our diverse and expanding client base.
“Our recent new client announcements, continued focus on acquiring additional new clients and expectations for further real money internet gambling legislation to pass in new states in the US set the stage for 2020 to be yet another very exciting year.”
Meanwhile, GAN has agreed a deal to supply its Simulated Gaming software to the Snoqualmie Indian Tribe in Washington.
The Snoqualmie Indian Tribe operates the Snoqualmie Casino in Washington State, and the agreement with GAN will enable it to provide an expanded suite of free-play online gaming and services.
GAN, which expects to launch the offering for the tribe in the first half of this year, will also have the opportunity to supply sports wagering products to the Tribe, pending the passage of legislation and regulatory approvals.
Stanford Le, interim chief executive and president at Snoqualmie Casino, said: “We were particularly interested in this partnership with GAN because of their professionalism and product quality.
“The Simulated Gaming model integrates well with our on-property rewards program and will serve as a valuable vehicle to provide our patrons with another entertainment outlet.”
GAN’s chief commercial officer Jeff Bermen added: “The Washington gaming industry is a nearly $2bn market with the majority of casinos concentrated in the Seattle-Tacoma region.
“We look forward to supporting the Snoqualmie Tribe in engaging and growing their audience as we work to solidify GAN’s market position as the leading B2B enterprise software solution provider to US land-based casinos.”